FALLOUT VEGAS REVENUE: Room Taxes, Gaming Fees, Rentals All Down in FY Q1
Posted on: November 13, 2025, 12:19h.
Last updated on: November 13, 2025, 12:29h.
- The LVCVA reported that tourism to Sin City was down significantly for the first quarter of the 2025-26 fiscal year
- Officials blame economic uncertainty and consumer anxiety for the downturn
The Las Vegas Convention and Visitors Authority (LVCVA) delivered grim but expected news at its quarterly board meeting on Wednesday, revealing that tourism revenue for the first quarter of its 2025–26 fiscal year dropped 14% compared to the same period last year.
The agency, which is primarily funded by visitor room taxes, reported total revenue of $91 million, down from $105.8 million, with room tax and gaming fee collections falling by $12.3 million (14%) to $73.9 million. Convention Center space rentals declined 9% to $6.8 million, while Las Vegas Monorail receipts dropped 13% to $5.7 million.
This marks the lowest Q1 revenue since the pandemic-era slump of 2021, when room tax collections bottomed out at $67.1 million.
The fiscal quarter, which spans July through September and aligns with the third quarter of the calendar year, also saw a sharp drop in hotel performance metrics. The average daily room rate fell nearly 7% year over year to $137.85, while occupancy dropped 7 percentage points to 76.1%. The average number of rooms filled daily fell more than 8%, from 130,820 in 2024 to 122,044 this year.
Holding Out Hope
Despite the downturn, the LVCVA doubled its marketing budget to $52.5 million in an effort to counteract declining visitation. The agency launched its largest campaign of the year in early September, targeting affordability concerns and attempting to rebrand Las Vegas as a value destination.
Officials said they remain hopeful the promotion will help stabilize visitation heading into the winter months.
So far, however, visitation for the year is projected to reach 28.9 million, down 7.9% from 2024. Stripwide occupancy has fallen 3.3 percentage points to 80.4%, and the average daily room rate across all properties has dropped 5.1% to $180.07. International travel has been hit particularly hard, with Harry Reid International Airport reporting a 6.4% decline in total passengers and a 13.5% drop in international arrivals.
LVCVA President and CEO Steve Hill attributed the slump to economic uncertainty, citing consumer anxiety over housing costs, auto tariffs, and general financial instability.
“People are pulling back on discretionary spending,” he said. “That’s affecting travel decisions, and we’re seeing it in the numbers.”
Last Comment ( 1 )
Hmmm, less people are coming to Las Vegas, and it's starting to impact our bottom lines. What do we do? What do we do? By Jove, I think I've got it. Let's just charge even more for everything!!! Higher resort fees, higher parking rates, $15 for domestic beers and $20 for imported beers, $30 and up for mixed drinks, surcharges at all the restaurants. While we're at it, let's step up all of those pesky nickel-and-diming fees. They take on a life of their own once they hit Social Media; and these days even negative publicity is better than no publicity. Remember nacho-gate at the Fontainebleau? Visitation went through the roof as people ordered the nachos so they could personally see how bad they were - and then posted it to Social Media. Our shrimp cocktail? $29.95 for two pieces of shrimp. Sandwiches made with Melba Toast - $24.95 "today's special". Prime Rib? - start serving just the rib, stripped of meat, $99.95 but we'll throw in our famous "two shrimp" Shrimp Cocktail as an appetizer!! Our Social Media hits will be through the roof and our revenue will be sky-high. Everyone - "we're in the money, we're in the money, and we're laughing all the way to the bank"!!